CANADA FX DEBT-C$ at nearly one-month high as U.S. dollar slides
* Canadian dollar at C$1.0902 or 91.73 U.S. cents * Bond prices mostly lower across the maturity curve By Leah Schnurr TORONTO, May 6 (Reuters) - The Canadian dollar strengthened against the greenback on Tuesday to its highest level in nearly a month, driven upward by a broad slide in its U.S. counterpart despite mixed domestic trade data. The gain helped the loonie break out of its recent trading range. The currency has been comfortable trading around either side of C$1.10 the last few weeks and Tuesday's action saw it push into the low C$1.09s. Even data that showed Canada posted a smaller-than-expected trade surplus in March did not dent the loonie. The domestic surplus fell to C$79 million ($72.06 million) as exports fell and imports rose. Still, February's surplus was revised sharply higher to C$847 million. The U.S. dollar was the focus in currency markets as investors looked past recent signs of U.S. economic improvement and sold the greenback. The U.S. dollar was down 0.5 percent against a basket of currencies. "It really isn't a Canadian dollar story this morning. I think it really is the U.S. dollar that's driving moves, not just against the Canadian dollar, but against every cross," said Greg Moore, senior currency strategist at Royal Bank of Canada in Toronto. The Canadian dollar was at C$1.0902 to the greenback, or 91.73 U.S. cents, stronger than Monday's close of C$1.0952, or 91.31 U.S. cents. The currency hit a session high of C$1.0898, its highest level since early April. "Overnight moves were a bit of a momentum play," said Moore. After breaking through decent short-term support in the mid-C$1.09 level, the currency could see momentum follow through toward the upper C$1.08 area, he said. Canadian government bond prices were mostly lower across the maturity curve, though the two-year was unchanged to yield 1.074 percent, while the benchmark 10-year was off 8 Canadian cents to yield 2.379 percent. ($1 = 1.0963 Canadian Dollars) (Reporting by Leah Schnurr; Editing by Nick Zieminski)
© Thomson Reuters 2017 All rights reserved.